How To Get Paid To Buy A Property -100x Better Than No $ Money Down
I was racking my head one day about a year ago (August 2018) and came up with an idea that opened up another piece of the puzzle to my future and while out driving around I just I stumbled on a great milestone in my life!
I read so many books and skip around a lot and have like 50-60 real estate investing related books laying everywhere, lol...
so again..this special thought?..I must have seen this idea in a BiggerPockets Podcast or a YouTube video or a book or something yet which one?..dang..just can't remember where yet right now, lol. will think about it for a bit.
Please Remember:
the size of the numbers in the example below are not important because this principle can work great correctly at any price point and any stage in your your investing career. these numbers are just an example -so we say- go out and find a property in your price range yet make sure to find one of those 1% properties.
BiggerPockets has plenty of articles, blogs, forums and podcasts to teach you anything and everything you need to know about this stuff..analyzing properties and stuff like that.
what we do not recommend is rushing out and rushing into any bad deal yet rush out into a great deal which is ever better than a good deal!
be patient, do your research, keep checking zillow and loopnet all the time looking for multi-family properties, mobile home parks, single family homes and on and on, lol.
for example:
say someone passes on and leaves a big building to his only family member left -his nephew- and the kid knows nothing about property management or the value of the property and he never gets it appraised cause it will cost him a grand or two he don't have right? probably happens all the time right next door, lol.
so here is where you come
along and understand the buildings true value with some paint, new floors, and light weight landscaping work and you see right thru the
old paint and clutter and see in your head what that bad boy will look
like when she's done!
so off you go and get on the phone to have it appraised right away and when you pay for it in which you should; You do Not have to share the info with the seller.
say it's a $100,000 after you get the appraisal back...
you offer him a really low amount because of the busted up condition and he don't care because all he wants is a sports car anyway...
you offer $50,000 and he takes it or counteroffers yet you make it happen!
the next day:
off to a commercial lender with an LLC and plan of action in hand and borrow 80% of the LTV
or (Loan to Value) of the property because the bank requires you to kick in 20% yourself so you only need 80k to get it bought yet your putting in the free equity you acquired by getting such an
"amazing deal" from your sports car dude, lol
In the end it really is Not a "No Money Down" and it's way better yet...
you just Got Paid To Buy It..!!!!
so you walk out of the bank with 70-80 grand and go
buy it for 50-60 grand and who cares cause you are getting
paid to buy it and gaining tons of forced equity after you paint and do floors, lol.
Pro Tip: If you go out and find a rental unit or even several, you can try to do a portfolio loan at your bank. say you find a seller with like 10 single family homes or something in a portfolio as a "Bundle" you could get a commercial lender to help you buy that portfolio.
It really is that easy so please go out and do it today otherwise tomorrow will just be almost the same as today was right?
absolute best advice ever: -go read lots of real estate investing books and go watch all the BiggerPockets Podcasts over on YouTube on your channel or BP or what not!
Comments (1)
This is so true even though it sounds "too good to be true". However, it isn't with a "Can Do" attitude. We have always stressed (sometimes starting minor family disputes) about how it will all play out. We stopped listening to all the horror stories and started putting together a plan of "How can we do it?" like Robert Kiyosaki says. We developed several what ifs and scenarios and realized it will all be okay and we can still sleep at night. 1 person was concerned with only "How much is it going to cost us?". "How are we going to make the payments every month." "How are we going to pay the bills?" and what if X, Y, and Z happens? We have worked thru all that. Actually easier than expected to be honest. Yes, our plan has changed several times. It still remains fluid as we address fridges that take a crap and furnaces that broke yesterday and all the whatnots. They really aint problems. Just things that get added to the ever-changing priority list. We just make it happen. You can too, just listen to Mindy Brandon, Robert, and many others. Read, listen, and then GO DO!! and get out there and take action, run numbers, make phone calls, etc. So what if you spend 50 hours on your unlimited flat-rate phone plan to get it done. There are challenges, not problems, every day. So what. Its actually exciting and gets handled promptly most of the time and life has never been better!! We are gonna keep going, keep doing, keep calling, and keep analyzing deals because we truly love it. We have built a great team too!! We still don't have it all figured out but we learn more and more each day, even after many years.
Branden Van Matre, over 5 years ago